This bill would terminate the Internal Revenue Code of 1986 after December 31, 2021 — except for self-employment taxes, Federal Insurance Contributions Act (FICA) taxes, and railroad retirement taxes.
The bill lays out a general framework for what the new federal tax system should look like, stressing that it should be a "simple and fair" system that:
Applies a low rate to all Americans;
Provides tax relief for working Americans;
Protects taxpayer rights and reduces tax collection abuses;
Eliminates bias against savings and investment;
Promotes economic growth and job creation;
Does not penalize marriage or families.
That said, the four page bill doesn't offer a detailed plan for what should come in place of the current tax code.
Congress would be required to approve the final version of the new federal tax system by July 4, 2021. If passed, a two-thirds majority vote in Congress would be required to change the December 2021 termination date for the tax code.